Recent legislations directed Medicare to revamp its decades-old system for reimbursing dialysis treatments, with focus on the risk adjustment of payments and on the transition toward a pay-for-compliance system. To design an optimal payment system that incorporates these features, we develop an...

We address the procurement of new components for recyclable products in the context of Kodak's single-use camera. The objective is to find an ordering policy that minimizes the total expected procurement, inventory holding, and lost sales cost. Distinguishing characteristics of the system are...

In kidney allocation, transplant candidates may have private information about their propensity to enjoy good outcomes after transplantation or about their relative expected improvement in quality of life after transplantation. This paper develops a mechanism design model to investigate the...

Motivatedby the exceptionally high mortality statistics of dialysis patients and the ongoing debate about the adequacy of the current reimbursement for dialysis in the United States, we pursue a detailed analysis of the dialysis delivery system. The analysis is based on a multiclass fluid model...

We examine the competition between procurement auctions and long-term relational contracts that emerges from the increased usage of electronic marketplaces. Procurement auctions create supply chain efficiencies by selecting the least costly bidder, and long-term relational contracts ensure the...

The principal-agent paradigm, in which a principal has a primary stake in the performance of some system but delegates operational control of that system to an agent, has many natural applications in operations management (OM). However, existing principal-agent models are of limited use to OM...

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